Question 1

The 1933 Act prohibits fraud only in transactions involving registered securities.

Accepted Answer

A) True 
 B)False  False

Question 2

A monopoly is illegal:

Accepted Answer

A)  under any circumstances,under Section 2 of the Sherman Act. 
B)  only if it is gained or maintained by using wrongful tactics. 
C)  if you have greater than 50 percent of market share. 
D)  any time there are no interchangeable products. 
A)  under any circumstances,under Section 2 of the Sherman Act. 
B)  only if it is gained or maintained by using wrongful tactics. 
C)  if you have greater than 50 percent of market share. 
D)  any time there are no interchangeable products. B

Question 3

Insider trading is illegal only if the person with secret information has a duty to disclose to those with whom he trades,thus in Chiarella v US,Mr.Chiarella was found innocent.

Accepted Answer

A) True 
 B)False  True

Question 4

The only defense available to a defendant in a per se violation is that the violation never occurred.

Accepted Answer

A) True 
 B)False

Question 5

Two universities located within 30 miles of each other agree to divide their market so as to help them both. The two schools draw a line down a map and each university agrees to accept students only on their side of the line.
-This agreement violates the:

Accepted Answer

A)  Sherman Act. 
B)  Clayton Act. 
C)  Robinson-Patman Act. 
D)  None of the above. 
A)  Sherman Act. 
B)  Clayton Act. 
C)  Robinson-Patman Act. 
D)  None of the above.

Question 6

Both the Justice Department and the Federal Trade Commission (FTC)have authority
to enforce the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 7

Pat's Pen Co.manufacturers and sells an inexpensive ball-point pen.Salley's Stationery purchases the pens for $.25 each in quantities of 1,000.Salley's discovered that a national chain,a competitor of Salley's,buys the pen at $.20 for 1,000.If Salley's Stationery sues Pat's Pen Co.for price discrimination:

Accepted Answer

A)  Pat's Pen Co.will win if it can prove that it has been selling to the national chain continuously at the cheaper rate. 
B)  Pat's Pen Co.will win if it can prove that it did not intend to economically harm Salley's Stationery. 
C)  Salley's Stationery will win unless Pat's Pen Co.can justify the price differential. 
D)  Salley's Stationery will win since price discrimination is a per se violation with no real defenses. 
A)  Pat's Pen Co.will win if it can prove that it has been selling to the national chain continuously at the cheaper rate. 
B)  Pat's Pen Co.will win if it can prove that it did not intend to economically harm Salley's Stationery. 
C)  Salley's Stationery will win unless Pat's Pen Co.can justify the price differential. 
D)  Salley's Stationery will win since price discrimination is a per se violation with no real defenses.

Question 8

Insiders must turn over to the corporation any profits they make from the
purchase and sale or sale and purchase of company securities made within a six-month period.

Accepted Answer

A) True 
 B)False

Question 9

In the case of Leegin Creative Leather Products Inc.v.Psks,Inc.the court had to decide..

Accepted Answer

A)  Is price fixing legal if the prices are reasonable? 
B)  Is resale price maintenance a per se or rule of reason violation of the Sherman Act? 
C)  both a & b are correct. 
D)  None of the above. 
A)  Is price fixing legal if the prices are reasonable? 
B)  Is resale price maintenance a per se or rule of reason violation of the Sherman Act? 
C)  both a & b are correct. 
D)  None of the above.

Question 10

The SEC has enforcement powers,including the power to issue cease and desist orders,to levy fines,and to confiscate profits from illegal transactions.

Accepted Answer

A) True 
 B)False

Question 11

The U.S.Attorney General brought a Sherman Act lawsuit against competitors in the widget market.The Attorney General alleged that these companies agreed to charge $20 for widgets.Which of the following defenses may apply?

Accepted Answer

A)  That the $20 price was fair. 
B)  That the $20 price was lower than the price before the agreement. 
C)  That the businesses did not agree to charge $20 for widgets. 
D)  That the competitors would have gone out of business without the agreement. 
A)  That the $20 price was fair. 
B)  That the $20 price was lower than the price before the agreement. 
C)  That the businesses did not agree to charge $20 for widgets. 
D)  That the competitors would have gone out of business without the agreement.

Question 12

Under the Robinson-Patman Act was it is legal to charge a different price for a product if...

Accepted Answer

A)  the items are the same 
B)  the cost of doing business is less with one buyer over another 
C)  Competition is lessened. 
D)  All the above. 
A)  the items are the same 
B)  the cost of doing business is less with one buyer over another 
C)  Competition is lessened. 
D)  All the above.

Question 13

Jackie learned of insider trading information while talking to Mark,a director of a large corporation.She took advantage of the information to buy stock and make a huge financial gain.If she is accused of violating securities law,what must the government prove in order to gain a conviction against Jackie?

Accepted Answer

The government must prove that (1)Jackie

Question 14

The following is a violation of the Sherman Abnti Trust Act.

Accepted Answer

A)  Setting the minimum price for an item. 
B)  Lowering prices to put a competitor out of business. 
C)  Monopolize a market 
D)  all of the above 
A)  Setting the minimum price for an item. 
B)  Lowering prices to put a competitor out of business. 
C)  Monopolize a market 
D)  all of the above

Question 15

Per se violations are subject to both civil and criminal penalties.

Accepted Answer

A) True 
 B)False

Question 16

The Sherman Act was enacted to deal with.....

Accepted Answer

A)  Anticompetitive mergers 
B)  Price fixing 
C)  Discriminatory pricing 
D)  Tying arrangements 
A)  Anticompetitive mergers 
B)  Price fixing 
C)  Discriminatory pricing 
D)  Tying arrangements

Question 17

Ed was an independent owner of a chain of TV stores.He successfully got customers into his store by cutting his prices on widely advertised name-brand products in order to sell other products for which he received a bigger profit.When the manufacturers of three of the name-brand products discovered Ed's actions,they agreed secretly to stop selling him their TVs.The three manufacturers:

Accepted Answer

A)  are doing nothing illegal,as they did not get Ed to agree to anything. 
B)  are free to agree not to deal with Ed since the public can go elsewhere and will not be hurt economically. 
C)  can choose either as a group to deal or not to deal with any retailer they want. 
D)  are engaged in a rule of reason violation of the antitrust laws if their action harms competition. 
A)  are doing nothing illegal,as they did not get Ed to agree to anything. 
B)  are free to agree not to deal with Ed since the public can go elsewhere and will not be hurt economically. 
C)  can choose either as a group to deal or not to deal with any retailer they want. 
D)  are engaged in a rule of reason violation of the antitrust laws if their action harms competition.

Question 18

To prosecute under the Robinson Patman Act it is necessary to prove:

Accepted Answer

A)  price discrimination occurred and it lessoned competition. 
B)  price discrimination occurred but the parties are not in competition with each other. 
C)  clearly separate products are tied together for purchase and sale. 
D)  non of these answers are correct. 
A)  price discrimination occurred and it lessoned competition. 
B)  price discrimination occurred but the parties are not in competition with each other. 
C)  clearly separate products are tied together for purchase and sale. 
D)  non of these answers are correct.

Question 19

A defense to a civil action brought under Section 10(b)and Rule 10b-5 of the 1934 Act would be:

Accepted Answer

A)  that the statute of frauds was not observed. 
B)  that the seller of the securities was not in privity of contract with the plaintiffs. 
C)  that the sellers did not intentionally or recklessly make a false representation. 
D)  All of the above. 
A)  that the statute of frauds was not observed. 
B)  that the seller of the securities was not in privity of contract with the plaintiffs. 
C)  that the sellers did not intentionally or recklessly make a false representation. 
D)  All of the above.

Question 20

Explain the overall purposes of the Sherman Antitrust Act,the Clayton Act,and the Robinson-Patman Act.How do each of these Acts relate to each other?

Accepted Answer

The Sherman Antitrust Act was created in

Exam 23: Government Regulation: Securities and Antitrust

The 1933 Act prohibits fraud only in transactions involving registered securities.

A monopoly is illegal:

Insider trading is illegal only if the person with secret information has a duty to disclose to those with whom he trades,thus in Chiarella v US,Mr.Chiarella was found innocent.

The only defense available to a defendant in a per se violation is that the violation never occurred.

Two universities located within 30 miles of each other agree to divide their market so as to help them both. The two schools draw a line down a map and each university agrees to accept students only on their side of the line. -This agreement violates the:

Both the Justice Department and the Federal Trade Commission (FTC)have authority to enforce the antitrust laws.

Insiders must turn over to the corporation any profits they make from the purchase and sale or sale and purchase of company securities made within a six-month period.

In the case of Leegin Creative Leather Products Inc.v.Psks,Inc.the court had to decide..

The SEC has enforcement powers,including the power to issue cease and desist orders,to levy fines,and to confiscate profits from illegal transactions.

The U.S.Attorney General brought a Sherman Act lawsuit against competitors in the widget market.The Attorney General alleged that these companies agreed to charge $20 for widgets.Which of the following defenses may apply?

Under the Robinson-Patman Act was it is legal to charge a different price for a product if...

The following is a violation of the Sherman Abnti Trust Act.

Per se violations are subject to both civil and criminal penalties.

The Sherman Act was enacted to deal with.....

To prosecute under the Robinson Patman Act it is necessary to prove:

A defense to a civil action brought under Section 10(b)and Rule 10b-5 of the 1934 Act would be:

Explain the overall purposes of the Sherman Antitrust Act,the Clayton Act,and the Robinson-Patman Act.How do each of these Acts relate to each other?

Introduction to Law

Business Ethics and Social Responsibility

Courts,Litigation and Alterntive Dispute Resolution

Constitutional, Statutory, Administrative, and Common Law

Intentional Torts and Business Torts

Negligence and Strict Liability

Crime

International Law

Introduction to Contracts

Contract Impediments

Conclusion to Contracts

Practical Contracts

Introduction to Sales

Negotiable Instruments

Secured Transactions

Bankruptcy

Agency Law

Employment Law

Employment Discrimination

Labor Law

Starting a Business: Llcs and Other Option

Life and Death of a Corporation

Accountants' Liability

Consumer Law

Environmental Law

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Intellectual Property

Real Property and Tenant: Landlord Law

Personal Property and Bailment

Estate Planning

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